Costco to pay $14M over misleading email subject lines
Costco has agreed to a $14 million settlement due to a class action lawsuit claiming that the company sent misleading promotional emails to Washington state residents, violating local laws. This lawsuit, filed in Costco's home state, argues that some limited-time offers were extended beyond their advertised deadlines. Subject lines like "Today is the last day to access Member-Only Saving" exemplify the issue. The court gave preliminary approval for the settlement on June 23, 2026, with a final hearing scheduled for October 2, 2026. While Costco denies wrongdoing, they chose to settle to avoid legal costs. Residents who got these emails between June 2, 2021, and July 7, 2026, can claim up to $500, with claims due by August 24, 2026.
Key facts
- Costco agreed to a $14 million settlement
- Lawsuit filed in Washington state
- Alleged violation of Washington's Commercial Electronic Mail Act and Consumer Protection Act
- Promotional emails promised limited-time deals that were extended
- Subject lines: 'Today is the last day to access Member-Only Saving' and 'Hot Buys available for 5 Days Only'
- Preliminary court approval on June 23, 2026
- Final approval hearing on October 2, 2026
- Class period: June 2, 2021 to July 7, 2026
- Claimants may receive up to $500 per qualifying email
- Deadline to file: August 24, 2026
Entities
Institutions
- Costco
- Washington's Commercial Electronic Mail Act
- Washington Consumer Protection Act
- Inc.
- Allrecipes
- PayPal
- Venmo
- Zelle
Locations
- Washington
- United States
Sources
- Quartz —